I am ignoring capital growth as it has nothing to do with "its not untill the debt is reduced to half of the current value of the house you break even with rent".
- Your repayments are only ever based on your initial purchase price. - As your rental income grows, the gap between your repayments and rental income decreases.
This is what it sounds like you are saying:
You will always be losing as average rent is 4% whilst average repayments are 9%, as though the 9% is being payed on the VALUE of the property not the PURCHASE PRICE.
When I calculate my rental yield I am calculating based on my purchase price, as it is this purchase price I am paying interest on, not the current value of the property. Do you get that?
